Chinese Economics Thread
- Thread starter Norfolk
- Start date
Hmm, is this good or bad?
Trade deal is over.
I would say that this was no surprise (as after his failed rally, Trump hit an all time low), but I bought calls today :< .
I would say that this was no surprise (as after his failed rally, Trump hit an all time low), but I bought calls today :< .
Trump is under fire from all fronts. He needed to make a drastic move to shore up his base and divert attention.
Well this is said by Peter Navarro to FOX News, so his tone is hardly a surprise.
I can't see Trump canceling the trade deal because it's one of the very "victories" in his view that he can use as re-election comes close. A cancellation of the trade deal followed by another tariff war when the U.S. economy is at rock bottom would be devastating for Trump ahead of elections.
AssassinsMace
Lieutenant General
AssassinsMace
Lieutenant General
So the spin now is Navarro declaring the trade deal is dead was actually a ploy to intimidate China into compliance. So announcing the deal is dead and Trump and Navarro retracting it happened within hours and I believe it was in the middle of the night over there was meant to scare China...?
plawolf
Lieutenant General
I think the deal is dead in all but name. China would have full justification to suspend all farm purchases from the US pending full resolution of the recent Beijing outbreak being linked to American food imports.
One of the few areas where China was making purchases was in agricultural products. Now that’s pretty much indefinitely suspended. Hence Navarro saying the deal is dead.
But Trump cannot have that, so it looks like we are in the amusing situation of China making zero purchases while America is lying to pretend the deal is still operating as normal. So basically Trump is winning so hard at the trade war that getting China to not officially announce the trade deal is dead is the only thing China needs to do to keep America tied in to its part of the commitments to the trade deal.
I am sure the irony isn’t being lost in Beijing that Trumps trade war, which was supposed to get China to make all sorts of concessions for America pretty much doing nothing is now completely flipped; China able to just do nothing and keep the trade deal in place while America gets nothing but is unable to do anything about it without giving away the game that the trade deal is dead.
One of the few areas where China was making purchases was in agricultural products. Now that’s pretty much indefinitely suspended. Hence Navarro saying the deal is dead.
But Trump cannot have that, so it looks like we are in the amusing situation of China making zero purchases while America is lying to pretend the deal is still operating as normal. So basically Trump is winning so hard at the trade war that getting China to not officially announce the trade deal is dead is the only thing China needs to do to keep America tied in to its part of the commitments to the trade deal.
I am sure the irony isn’t being lost in Beijing that Trumps trade war, which was supposed to get China to make all sorts of concessions for America pretty much doing nothing is now completely flipped; China able to just do nothing and keep the trade deal in place while America gets nothing but is unable to do anything about it without giving away the game that the trade deal is dead.